The Trial Balance is CFO.com’s weekly preview of stories, stats and events to help you prepare.
Part 1: What’s going on at the Internal Revenue Service?
The Internal Revenue Service has rarely attracted as much attention as it has this summer.
Congressional investigations, criticism over taxpayer service and renewed debate over the complexity of the tax code have all landed within a matter of weeks. At the same time, new leadership has taken the reins at the agency.
According to the Taxpayer Advocate Service, fewer calls were answered by live representatives during the latest filing season, while hold times rose significantly. The report also pointed to growing correspondence backlogs, leaving taxpayers waiting longer for responses.
Those findings followed another report from the Treasury Inspector General for Tax Administration, which found IRS telephone representatives provided inaccurate or incomplete information in a meaningful share of reviewed calls. The findings renewed questions about whether the agency can keep pace with an increasingly complex tax code.
More than 25 years ago, former IRS Commissioner Charles Rossotti warned employees were being asked to do what he called "the impossible." In a recent National Review opinion piece, tax attorney Daniel Pilla revisited that exact warning, arguing Congress has continued expanding the tax code with new credits, deductions and reporting requirements while expecting the agency to administer those changes accurately.
Politics has only added to the attention surrounding the agency, as CBS News recently reported that Senate Democrats are questioning whether a Justice Department settlement involving President Donald Trump could shield Trump-affiliated businesses from future IRS action related to prior tax returns. Several of those companies have since said they are not covered by the agreement, though lawmakers continue pressing for answers.
Much of the spotlight has also centered on Frank Bisignano, the former Fiserv CEO who now oversees the IRS while continuing to serve as commissioner of the Social Security Administration. Treasury Secretary Scott Bessent has credited Bisignano with improving taxpayer service and bringing a private-sector approach to the agency, even as critics argue workforce reductions have made those goals more difficult to achieve.
The headlines have extended beyond tax administration itself, as CNBC reported this month that Bisignano denied allegations first published by The Wall Street Journal claiming he surveilled fellow executives during his tenure at JPMorgan Chase. Speaking with CNBC, Bisignano dismissed the allegations as false and said he and Wells Fargo CEO Charlie Scharf, who was identified in the Journal's reporting, "had a good laugh about it.”
Part 2 — This week
Here’s a list of important market events slated for the week ahead.
Monday, Aug. 3
- S&P final U.S. manufacturing PMI, July
- ISM manufacturing, July
Tuesday, Aug. 4
- U.S. trade balance, June
- Factory orders, June
- Job openings, June
Wednesday, Aug. 5
- ADP employment, July
- S&P final U.S. services PMI, July
- ISM services, July
Thursday, Aug. 6
- Initial jobless claims, week ending Aug. 1
- U.S. productivity, Q2
- Wholesale inventories, June
Friday, Aug. 7
- U.S. employment report, July
- Consumer credit, June
Part 3 — Quote of the week
“To have a strategic finance organization, you first need a strong accounting foundation. Otherwise, it’s garbage in, garbage out.”
Gary Vecchiarelli
President and CFO, CleanSpark
Last week, Gary Vecchiarelli, president and CFO of CleanSpark, discussed how the firm is shifting from bitcoin mining to AI data centers, why AI is a natural evolution of its business and how he rebuilt the company’s accounting foundation.
